What Is the Graham Number? A Beginner's Guide to Stock Valuation
Learn how to use Benjamin Graham's famous formula to calculate the maximum fair price for a stock. The Graham Number is the foundation of value investing.
Enter any stock's fundamentals and our Graham Number Calculator instantly tells you if it's a bargain or overpriced — the same method Warren Buffett learned from Benjamin Graham.
Is your stock undervalued? Enter the numbers and find out instantly.
Try an example:
Benjamin Graham's method in 3 simple steps — the same approach that made Buffett billions
Use our free calculator or screener to find what a stock is actually worth based on earnings and book value — not hype.
Only buy when the market price is 25%+ below intrinsic value. This buffer protects you even if your analysis is slightly off.
Hold quality dividend stocks and get paid while the market catches up to the stock's true value. Patience is the edge.
Stocks trading well below their intrinsic value
Johnson & Johnson
Market Price
$152.30
Intrinsic Value
$198.50
Margin of Safety
23.3%
Dividend Yield
3.2%
Pfizer Inc.
Market Price
$26.80
Intrinsic Value
$42.10
Margin of Safety
36.3%
Dividend Yield
6.1%
Intel Corporation
Market Price
$22.40
Intrinsic Value
$35.80
Margin of Safety
37.4%
Dividend Yield
1.8%
Learn how to use Benjamin Graham's famous formula to calculate the maximum fair price for a stock. The Graham Number is the foundation of value investing.
Warren Buffett credits Benjamin Graham for his success. Learn how Graham's value investing principles still drive Buffett's strategy — and how you can use the same approach.
Learn what dollar cost averaging (DCA) is, how it works, and why it's the best strategy for beginner investors. Includes real examples and a step-by-step guide.
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